1.Table 27
|
|
|
Marginal Product |
Marginal Revenue |
|
|
0 |
0 |
--- |
--- |
--- |
|
1 |
400 |
400 |
$800 |
$450 |
|
2 |
700 |
300 |
$600 |
$450 |
|
3 |
950 |
250 |
$500 |
$450 |
|
4 |
1050 |
100 |
$200 |
$450 |
Refer to Table 27. How many workers should the
firm hire?
A.1
B. 2
C. 3
D. 4
2. If education produces positive externalities and the government does not intervene in the market, we would expect
Group of answer choices
A. the market equilibrium price to be higher than the efficient equilibrium price.
B. the market equilibrium quantity to be lower than the efficient equilibrium output level.
C.the market equilibrium quantity to be higher than the efficient equilibrium output level.
D.none of the above
3.Which of the following is false?
A. The nature of public goods is such that the government cannot accurately assess the benefits of those affected.
B. National defense and flood control are illustrations of public goods.
C. Just as in the case of external costs, public goods tend to be underprovided by the private sector.
D. All of the above are true.
In: Economics
Suppose you are the manager of Speedy Oil Change which claims that it will change the oil in customers’ cars in less than 30 minutes on average. Further suppose that several complaints have been filed from customers stating that their oil change took longer than 30 minutes. Upper-level management at Speedy Oil Change headquarters has requested that you investigate the complaints. To begin your investigation, you randomly audit 36 oil changes performed by Speedy Oil Change and record the time each customer waited for the oil change. The number of minutes to complete each of the 36 oil changes is reported below.
|
42 |
23 |
19 |
11 |
10 |
27 |
|
41 |
27 |
22 |
26 |
24 |
32 |
|
27 |
25 |
25 |
35 |
31 |
22 |
|
23 |
31 |
17 |
37 |
33 |
25 |
|
28 |
24 |
28 |
21 |
40 |
16 |
|
33 |
30 |
14 |
23 |
22 |
10 |
In the questions below, you will test if the mean is significantly less than 30 minutes at a significance level of 0.05. (Please be sure to use correct notation and symbols in all answers.)
1. List the requirements that should be met for this hypothesis test.
2. Write the null and alternative hypothesis.
3. Calculate the test statistic and the P-value (to four decimal places). Label each accordingly.
[Indicate which calculator program you use.]
4. Would you reject the null hypothesis? Justify your answer using a complete sentence and proper
grammar.
5. Is the company fulfilling its promise to “change the oil in customers’ cars in less than 30 minutes on
average?”
_________________________________________________________________________________
Unfortunately, Speedy Oil Change continues to get customer complaints. As the manager, you feel that perhaps more analysis is needed. You know that you are likely to be asked “how much less than 30 minutes is our mean oil change?”
6. Construct a 90% confidence interval (to the nearest tenth). [Indicate which calculator program
you use.]
7. State the point estimate and calculate the margin of error (to the nearest tenth).
8. Explain to your superiors how to interpret this interval.
9. Using the confidence interval you created, calculate the interval of values that answers the
question “how much less than 30 minutes is our mean oil change?”
In: Statistics and Probability
In 1987, Roy leased real estate to Drab Corporation for 20 years. Drab Corporation made significant capital improvements to the property. In 2006, Drab decides not to renew the lease and vacates the property. At that time, the value of the improvements is $800,000. Roy sells the real estate in 2018 for $1,200,000 of which $900,000 is attributable to the improvements. When is Roy taxed on the improvements made by Drab Corporation?
Lee, a citizen of Korea, is a resident of the U.S. Any rent income Lee receives from land he owns in Korea. Is that revenue (from Korea) subject to the U.S. income tax? Explain.
In: Economics
Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in $15, $25, and $50 increments. Assume Apple sells $21 million in iTunes gift cards in November, and customers redeem $14 million of the gift cards in December.
Required:
1. Record the advance collection of $21 million for iTunes gift cards in November.
2. Record the revenue recognized when $14 million in gift cards is redeemed in December.
3. What is the ending balance in the Deferred Revenue account?
In: Accounting
|
Anderson Accounting Services LLC provides accounting and tax preparation and consulting services. Sometimes customers only wish to have financial statements and/or tax returns prepared. Sometimes customers bundle accounting and tax preparation with consulting services (to be provided over a period of time). Sometimes customers only wish to have consulting services provided over a period of time. Because Anderson is a service firm there is no cost of goods sold associated with their services. |
||||||||
| Customer is Civic Corporation | 1 | |||||
| Tax consulting begins on November 1st and runs through the next April | 11/1/X7 | |||||
| Date of contract | 11/1/X7 | |||||
| Length of consulting services | 6 months | months | ||||
| Tax return preparation occurs over the period February through April of | 20X8 | |||||
| Length of tax prepartion | 3 months | |||||
| Price of tax preparation to be allocated over the return preparation period | $ 2,000 | stand alone price | ||||
| Price of consulting services to be allocated over consulting period | $ 5,000 | stand alone price | ||||
| Customers are charged a lesser amount as follows for both tax and consulting | $ 6,000 | |||||
| Anderson Accounting Services LLC's current year end | 12/31/X7 | |||||
| Customers pay at the contract date for BOTH the consulting and tax preparation services. | ||||||
What are the performance obligations in the contract?
| A. |
Tax preparation services |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| B. |
Tax preparation services and tax consulting services |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| C. |
Unable to determine |
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|
D.Tax consulting services QUESTION 3 Determine the transaction price that should be allocated to the consulting services.
QUESTION 4 Calculate the total revenue that should be recognized in the current accounting period.
QUESTION 5 What is the total amount in the deferred revenue account(s) at the end of the current accounting period?
QUESTION 6 What is the total amount of revenue that should be recognized in the NEXT accounting period period?
QUESTION 7 The following journal entry has what impact on the income statement? Debit Cash XXX Credit Deferred Revenue XXX
QUESTION 8 The following journal entry has what impact on the income statement? Debit Cash XXX Credit Accounts Receivable XXX
QUESTION 9
QUESTION 10
|
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In: Accounting
Jiffy Corporation has its seen its earning increase steadily each quarter from 2004 (its founding) through 2008. Because of the recession, Jiffy has struggled to provide investors with the same level of growth. Jiffy’s CEO, COO and CFO whose wealth is significantly leveraged by Jiffy’s equity-based compensation, are trying to focus on how to keep the company on a growth climb despite the hard time. Interestingly, each quarter, Jiffy has been able to meet or beat the investor’s forecasts. Jiffy’s typical business model is to ship its products to customers on account with payments due within 30 days after delivery. Jiffy’s products are manufactured in two plants, one in Columbus, Ohio and the other in Houston, Texas. Jiffy’s inventory is stored in 20 different warehouses located in 15 states. Many of Jiffy’s smaller customers are start-up companies. Surprisingly, Jiffy has a relatively rate of uncollectible accounts relative to others in its industry. Anderson & Cooper is Jiffy’s external auditor. You are the engagement partner assigned to Jiffy’s audit. Please respond the following question: 1. What are some of the red flags for possible management fraud based on the client’s profile?
2. Identify three types of management (financial statement)
fraud that might be attempted in
this situation. What red flags will you look for to identify the
frauds, and how will the
frauds be attempted?
In: Accounting
In 2006 you joined a group of 20 Richland College graduates to start a company that provides innovative tutoring and educational services You are responsible for all accounting activities. After applying to the Secretary of State in Austin, Shannon’s Tutoring Corporation (STC) received its corporate charter and began business as a Texas Corporation on December 1, 2006. During the first month of business the following Transactions occurred. You must analyze each transaction’s effect on the Accounting Equation and Prepare the Income Statement, Statement of Retained Earnings and the Balance Sheet for the Year ended 12/31/2006.
|
12/01/06 |
STC began business by investing $50,000 in exchange for 10,000 shares of Common Stock. |
|
|
12/1/06 |
STC Paid $12,000 for 1 year of rent for the 12 month period beginning December 1, 2006 through November 30, 2007. (Hint: Prepaying rent in advance creates an Asset called Prepaid Rent ) |
|
|
12/1/06 |
STC received $18,000 cash in advance from the Texas School System and signed a contract to provide monthly tutoring services to students from December 2006 through May of 2007. |
|
|
12/02/06 |
STC purchased a Computer System for $35,000 cash. |
|
|
12/09/06 |
STC earned & received $1,000 in cash by providing tutoring services. |
|
|
12/12/06 |
STC Billed the RISD $2,500 for tutoring services performed at their school. Payment has not been received. |
|
|
12/12/06 |
STC Purchased $500 of Supplies on Account. |
|
|
12/21/06 |
STC Paid $400 Wages to employees. |
|
|
12/23/06 |
STC Received $1,500 Cash from RISD for services billed on 12/12/06(#6). |
|
|
12/29/06 |
STC Paid a $300 Utility Bill. |
In: Accounting
| Delta, United, and American Airlines announced purchases of planes on July 18 (7/18), February 12 (2/12), and October 7 (10/7), respectively. |
| Delta | United | American | |||||||
| Date | Market Return |
Company Return |
Date | Market Return |
Company Return |
Date | Market Return |
Company Return |
|
| 7/12 | −.34 | −.47 | 2/8 | −.83 | −1.06 | 10/1 | .54 | .27 | |
| 7/13 | .00 | .24 | 2/9 | −.93 | −1.06 | 10/2 | .44 | .67 | |
| 7/16 | .54 | .80 | 2/10 | .44 | .18 | 10/3 | 1.14 | 1.14 | |
| 7/17 | −.54 | −.28 | 2/11 | .64 | 1.66 | 10/6 | .14 | −1.14 | |
| 7/18 | −2.13 | 1.25 | 2/12 | −.34 | −.07 | 10/7 | −2.24 | −.28 | |
| 7/19 | −.88 | −.62 | 2/15 | 1.14 | 1.70 | 10/8 | .54 | .54 | |
| 7/20 | −.93 | −1.09 | 2/16 | .54 | .54 | 10/9 | −.34 | −.18 | |
| 7/23 | .74 | .47 | 2/17 | −.34 | −.18 | 10/10 | .34 | −.08 | |
| 7/24 | .24 | .09 | 2/18 | .34 | .17 | 10/13 | .00 | −.14 | |
|
Given the above information, calculate the cumulative abnormal return (CAR) for these stocks as a group. (A negative answer should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| Abnormal returns (Ri – RM) | |||||||
| Days from announcement | Delta | United | American | Sum | Average abnormal return | Cumulative abnormal return | |
| −4 | |||||||
| −3 | |||||||
| −2 | |||||||
| −1 | |||||||
| 0 | |||||||
| 1 | |||||||
| 2 | |||||||
| 3 | |||||||
| 4 | |||||||
In: Finance
Question 23
A company shows the following balances:
| Cost of goods sold | $900,000 |
| Sales | 2,000,000 |
| Sales discounts | 25,000 |
| Sales returns and allowances | 225,000 |
What is the gross profit margin?
| 42.5% |
| 48.6% |
| 49.3% |
| 55.0% |
26 Sales Allowances and Sales Discounts
| both have a normal debit balance and are therefore regarded as expense accounts. |
| are both designed to encourage customers to pay their accounts promptly. |
| are both contra revenue accounts to Sales. |
| both have a normal credit balance. |
27.Which one of the following statements is true?
| When the terms of sale are FOB shipping point, the seller is responsible for any damages to the goods during shipping. |
| When returned merchandise is defective, the seller's sales account is debited. |
| The first-in, first-out (FIFO) inventory cost method results in cost of goods sold valued at the most recent cost. |
| In periods of falling prices, FIFO will result in a higher ending inventory valuation than the average cost formula. |
| None of the above is true. |
Question 32
A company just starting its business made the following four
inventory purchases in June:
| Date | Number of Units | Total Cost |
| Jun 1 | 150 | $480 |
| Jun 10 | 200 | 660 |
| Jun 15 | 200 | 680 |
| Jun 28 | 150 | 525 |
On June 25, the company made its first sale when a local customer
purchased 500 units for $3,500. The company uses a perpetual
inventory system.
The inventory cost formula that results in the highest gross profit
for June is
| average. |
| gross profit is the same under both cost formulas. |
| not determinable. |
| FIFO. |
In: Accounting
IMA Ltd.
Material Master Data Solutions
Overview:
In 2019 IMA celebrated 30 years in business. This is a big milestone for the company and clearly demonstrates our credibility and longevity in the market. In 1989 when the company started we were the trailblazers and focused on indirect material data (data related to the spare parts that keep manufacturing equipment running) before there were large ERP (Enterprise Resource Planning) systems. At that time our service allowed customers to find their spare parts quicker which allowed them to repair failed production equipment faster; thereby reducing expensive production downtime. Our sales team is responsible for revenue generation pertaining to the sale of our Material Master Data Management services. These services allow asset intensive organizations the ability to leverage normalized data within their ERP to achieve benefits related to reduced production downtime, better MRO part procurement, and the elimination of excess spare part inventory. For the most part our customers consist of manufacturing companies with multiple sites. The sites can range from a few within a province to hundreds worldwide. Customers such as Pepsi, Honda, and McCain Foods have been long time customers and rely on IMA to ensure their data remains best-in-industry.
The price model for our main revenue stream of project data cleanse has remained the same for the last decade; charges vary based on the work performed to each line of customer data. There are three service levels consisting of a cosmetic cleanse, standardization, and item enhancement with pricing by line item of $1.50, $2.50, and $3.50 respectively. Every project is subject to a $5,000 IT fee for data preparation. The average dataset is 60,000 line items but projects range from 2,000 line items to 750,000 line items. The sales team sells $25 million annually worth of project based dataset cleanse services worldwide. Recurring revenue is currently generated from a data governance solution that allows the customer to maintain the integrity of their newly cleansed data condition using a web based portal for item addition and item modification. Users pay $150 per person per month to access this service. Currently the recurring revenue represents $7.5 million or 15% of the company’s overall sales. The sales team is lean and consists of a team of 6 Territory Managers defined globally by geographic region. They report to a VP of Sales. Customer acquisition cost is high (approximately $5,000) due to the technical demand of this type of project. The sales process typically includes initial introductory web conference, customized data evaluation, sales proposal, ROI calculator, in-person proposal review and negotiations, and final proposal acceptance. Social media and the company website generate most of the leads. Competition is limited globally as we compete in a niche market. We project the total market globally for data set cleanse projects to be $500 million.
In 2017 the owners recognized a change in the market. Customers now have Data Governance teams of their own and attempt to perform the IMA services in-house. The IMA executive team allocated $3 million to generate a SAAS model solution that would provide customers the tools they need to clean and maintain their own data. If nothing was done to adapt to the market changes IMA could risk losing the project based revenue steam. Instead, the SAAS would generate a solution for the changed market while creating a new revenue stream for IMA.
The SAAS solution is branded as uManage Pro and consists of the following:
uManage SEARCH – allows users to effectively search their item master data. Currently the typical ERP is weak at best with its search capability.
uManage DATA LIBRARY – users can access a data repository of over 3 million items to assist with item addition. This is the largest single data repository of its kind in the global marketplace. IMA is the first to allow external users to access the data. It has been created over 30 years and would be costly and timely for a competitor to re-create.
uManage DATA GOVERNANCE – this tool allows customers to maintain their data using an embedded data schema. Doing so ensures consistency amongst the data in their item master while preventing duplicate entries. Data Governance includes both the SEARCH and DATA LIBRARY services.
uManage PRO – includes search, data library, data governance, as well as a full cleansing tool that allows the user to clean their own data. This advanced technology replicates the tools IMA has used for the last decade. AI (neural network) is a significant contributor to the SAAS and is the first of its kind.
Market Pricing
Service Monthly cost per user
SEARCH $ 49.00
DATA LIBRARY $ 99.00
DATA GOVERNANCE $ 99.00
uManage Pro $5,000.00 (monthly fee, unlimited users)
The challenge:
The executives at IMA recognized the change in the market in 2017 and made a bold decision to prepare for the changes before it was too late. They should be commended for their foresight and their commitment to change the company to meet the market demands. However, hiring a software development team and creating the technology is only a portion of what it takes to maintain their position as markets leaders. IMA has realized that their current marketing team is unfamiliar with the strategies involved in marketing an innovative SAAS. The VP of sales has admitted that his current team is extremely successful at selling the typical IMA project based services however software, specifically SAAS, is an area that they are not currently skilled to sell. The technology is now completed and IMA is unprepared to take their market leading solution to market.
Options to consider:
1.
Do we train the current marketing and sales team to better understand how to perform
their area of responsibility with regards to SAAS?
2.
Do we hire a new marketing/sales team that specializes in SAAS Social Selling?
Marketing?
3.
Can a third party marketing company be leveraged in the short term to augment the
existing marketing team?
4.
Should there be a test period for any of these ideas?
Question. what will be the sale strategy of the company?
b) who will be targeted market and customers?
c) action plan and financial forecast for one year to reach mention target?
In: Operations Management